Question No: 35 EJOY- Bpp 2011 revision kit.

Hi

Help please. Thanks in advance.

I have some doubts on Q:No: 35 ‘Ejoy’ in P2 Bpp 2011 revision kit.

1) Working no: 8 – Why goodwill 40 is grossed up by 100%/80% ? How come 6 is taken for notional goodwill calculation of TBay(that is also grossed up 10%/60%).And , for calculating the recoverable amount of TBay why is selling cost of 5 adjusted to (5 * 100/60) ?

2) Working no: 10 – How dividend of 40 calculated and arrived at ?

Those two doubts took much of my time ?.

Regards

Jaison